Place of removal and service tax credit

[srinivasan.K kuppuswamy]

Dear Sir,

In the 2014-15 budget the place of removal has been specifically mentioned by amending the Cenvat Credit Rules 2004 vide notification Number 21/2014 CE (NT) dt 11.07.2014.

Cenvat Credit Rules 2004 from 11.07.2014

„(qa) “place of removal” means-

(i) a factory or any other place or premises of production or manufacture of the excisable goods;

(ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty;

(iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory,

from where such goods are removed;‟

On the above we feel the service tax paid on export services for the export made from our

factory premises is post manufacturing activitity services. Weill we eligible for service tax credit or we have to go for refund under Notification 41/2012 .

Request your valuable advice.

Regards

K Srinivasan

[Rajagopalan Ranganathan]

Sir,

In number of cases CESTAT has held that in respect of export of excisable goods port of export is place of removal. Therefore service tax paid on any service availed upto port of export is available as credit. Definition of place of removal added to CENVAT Credit Rules nowhere mentioned that in respect of export goods port of export will not be treated as place of removal. Hence the answer to your question is yes, you can avail the credit.

AI Summary

Place of removal: service tax on export-related services up to the port qualifies for cenvat credit. The amended definition of place of removal in the Cenvat Credit Rules includes factory premises, warehouses, and depots; tribunal practice treats the port of export as a place of removal, so service tax paid on services availed up to the port for export of excisable goods is eligible for Cenvat credit rather than requiring refund.